(DP 2018-05) Export Promotion Policy and Economic Growth in the Philippines: A Comparative Context

Abstract

This paper argues that, in any review of export promotion policy of the Philippines, it is more fruitful if a comparative context (relative to countries in its similar stage) is used. We broadly trace export promotions policies of 3 illustrative tiger economies (South Korea, Singapore, and Taiwan) and 3 emerging economies (Indonesia, Malaysia, and Thailand). The Philippines went through the entire process of export promotion and development in the same way as these economies did. Three critical factors influenced exports in all these countries and for which the Philippines either hardly paid attention to or took on a different policy tack. The first is infrastructure and related facilities and how these defined the overall environment for domestic production and international trade. The second is the importance of foreign direct investments (FDI) in the country’s export strategy.  The third is the use of exchange rate policies to enhance other export promotion policies.